Major UK offshore wind project scrapped for breaching climate plans

Swedish energy company Vattenfall AB has announced the halt of a major offshore wind project in the UK due to a significant increase in costs. The wind farm, set to power 1.5 million UK homes, is no longer viable after the cost of the technology rose by 40%. Vattenfall is expected to incur a loss of 5.5 billion Swedish kronor ($537 million) as a result of this decision. The escalating costs of development in the offshore wind sector threaten the UK’s efforts to reduce reliance on gas and coal-fired power plants.

Vattenfall’s decision reflects the challenging market conditions for offshore wind energy, which have been further exacerbated by geopolitical factors. The dependence on offshore wind energy in the UK is particularly high, with plans to quadruple the offshore wind fleet by the end of the decade. This setback makes the UK more dependent on imported fossil fuels and undermines its efforts towards energy independence.

The 1.4 gigawatt Norfolk Boreas wind farm, a project crucial for the UK’s short-term plans, was in an advanced stage of development. However, despite winning a government-sponsored contract last year, the project’s future has been jeopardized by the current market environment and low electricity prices. Developers had previously warned the government about the rising costs that could hinder these projects.

To meet its offshore wind power target for 2030, the UK must navigate various challenges successfully. However, with this major project halted, achieving the goal becomes less likely and more expensive than anticipated. Vattenfall is now assessing options for the Norfolk Boreas project and others in the same area, as the company’s wind business remains profitable overall.

Overall, the UK’s climate and energy security plans face a setback with the cancellation of this offshore wind project. The government must recognize the changed economic situation for developers and ensure that renewable energy tenders and policies align with rising costs to prevent increased dependency on foreign gas and higher household bills. Renewable energy remains a cheaper alternative to gas and offers protection against future price spikes.

Source .